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ktd
Level 1

Oregon Unemployment Tax

When setting up my company in Quick Books, I forgot to uncheck the box that subjects employees to unemployment. The owner of the company has had three paychecks, all deposited, with unemployment in the taxes. How do I take the unemployment tax out of the paycheck & Liabilities, without changing the paycheck amount, as well as the taxes? 

1 Comment 1
Rea_M
Moderator

Oregon Unemployment Tax

You'll have to create a payroll liability adjustment in QuickBooks Desktop (QBDT) Payroll, @ktd . This way, you'll be able to take the unemployment tax out of your employee's paychecks, correct the liability amount, and pay your payroll taxes accordingly.

 

Here are the most common reasons to perform the liability adjustment process:

  • To fix a Health Insurance Company Contribution set up with incorrect tax tracking type.
  • To correct YTD wages, deductions, or additions.
  • To change the amount for company contribution items.

 

Before doing the adjustment, please make sure to first unchecked the box that subjects employees to the Oregon unemployment tax. 

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After that, you need to get all the necessary information to adjust your liability. Pull up a Payroll Summary report for the specific quarter you need to adjust.

 

Once ready, follow these steps in adjusting your payroll liability.

  1. Go to the Employees menu.
  2. Choose Payroll Taxes and Liabilities, then select Adjust Payroll Liabilities.
  3. Complete all the necessary fields (i.e. Date, Effective Date, and Adjustment is for)
  4. Select the name of the employee.
  5. Complete the Taxes and Liabilities fields.
  6. Select Accounts Affected, then OK.
  7. Repeat for other employees if you need to, and select OK.

 

You can refer to this article's Step 2: Adjust your payroll liabilities section for the complete details: Adjust payroll liabilities in QuickBooks Desktop.

 

To ensure your liability is now correct, I'd recommend pulling up a Payroll Summary report again. Just go to the Reports menu, select Employee and Payroll, then Payroll Summary.

 

Please let me know if you have other concerns. I'm just around to help. Take care always.

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